EXECUTIVE EMPLOYMENT AGREEMENT
 
 
        This  Executive  Employment  Agreement   ("Agreement"),   including  the
attached  Exhibits "A", "B" and "C", is entered into by and between  Halliburton
Company,  a Delaware  corporation  having offices at 3600 Lincoln Plaza,  500 N.
Akard Street, Dallas, Texas 75201-3391  ("Employer"),  and Richard B. Cheney, an
individual  currently residing at 2920 White Pine Lane,  Jackson,  Wyoming 83001
("Employee"),  to be  effective  on the later of the date of  execution  of this
Agreement by the parties hereto or the date of approval of this Agreement by the
Board of Directors of Employer  pursuant to the  provisions  of Section 6.2 (the
"Effective Date").
 
                                  WITNESSETH:
 
        WHEREAS,  Employer  is desirous of  employing  Employee  pursuant to the
terms and conditions and for the consideration set forth in this Agreement,  and
Employee is desirous of entering  the employ of Employer  pursuant to such terms
and conditions and for such consideration.
 
        NOW,  THEREFORE,  for  and  in  consideration  of the  mutual  promises,
covenants,  and  obligations  contained  herein,  Employer and Employee agree as
follows:
 
 
ARTICLE 1:        EMPLOYMENT AND DUTIES:
 
        1.1.  Employer  agrees to employ  Employee,  and  Employee  agrees to be
employed by Employer,  beginning as of the Effective Date and  continuing  until
September  30, 2003 (the  "Term"),  subject to the terms and  conditions of this
Agreement.
 
        1.2.  Beginning  October 1, 1995,  Employee  shall be  employed as Chief
Executive  Officer and  President of Employer.  Employee  agrees to serve in the
assigned  position  and to  perform  diligently  and to the  best of  Employee's
abilities the duties and services appertaining to such position as determined by
Employer,   as  well  as  such  additional  or  different  duties  and  services
appropriate  to such position which Employee from time to time may be reasonably
directed to perform by Employer.  As of the Effective  Date,  Employee  shall be
elected as a member of Employer's Board of Directors and, upon the retirement of
the incumbent Chairman of the Employer's Board of Directors, shall be elected to
serve as the Chairman of the  Employer's  Board of Directors.  Employee shall at
all times comply with and be subject to such policies and procedures as Employer
may establish from time to time.
 
        1.3.  Employee  shall,  during the period of  Employee's  employment  by
Employer,  devote Employee's full business time, energy, and best efforts to the
business  and affairs of  Employer;  provided,  however,  that it is agreed that
Employee's  employment  shall be on an asneeded basis between the Effective Date
and  October 1,  1995 in order to enable  Employee  to wind up certain  business
matters and to relocate his residence, and further provided that Employee shall
 
 
 
be permitted to complete any speaking  engagements for which he is contractually
committed on the  Effective  Date.  Subject to the  provisos to the  immediately
preceding  sentence,  Employee may not engage,  directly or  indirectly,  in any
other  business,   investment,  or  activity  that  interferes  with  Employee's
performance  of  Employee's  duties  hereunder,  is contrary to the interests of
Employer,  or requires any significant  portion of Employee's business time. The
foregoing  notwithstanding,  the parties  recognize  and agree that Employee may
engage in passive  personal  investments and other business  activities which do
not conflict  with the  business  and affairs of the Employer or interfere  with
Employee's  performance of his duties  hereunder.  In that regard,  Employee may
serve on the board of directors of up to three  corporations  of his choice,  so
long as service on any such board  simultaneously with his service on Employer's
Board  of  Directors  does not  constitute  a  violation  of  federal  statutory
provisions,  or  related  rules  and  regulations,  pertaining  to  interlocking
directorships  and the meeting times of such boards of directors do not conflict
with the meeting times of Employer's  Board of Directors.  Except as provided in
the preceding sentence,  Employee may not serve on the board of directors of any
entity other than the Employer during the Term without the approval of the Audit
Committee of the Employer's Board of Directors in accordance with the Employer's
policies and  procedures  regarding  such  service,  which  approval will not be
unreasonably  withheld.  Employee shall be permitted to retain any  compensation
received for such speaking engagements and service on other corporations' boards
of directors.
 
        1.4.  Employee  acknowledges  and agrees that  Employee owes a fiduciary
duty of  loyalty,  fidelity  and  allegiance  to act at all  times  in the  best
interests  of the  Employer  and to do no act which would  intentionally  injure
Employer's  business,  its interests,  or its reputation.  It is agreed that any
direct or indirect  interest in,  connection  with,  or benefit from any outside
activities,  particularly commercial activities, which interest might in any way
adversely  affect  Employer,  or any  of its  affiliates,  involves  a  possible
conflict of interest.  In keeping with Employee's  fiduciary duties to Employer,
Employee agrees that Employee shall not knowingly  become involved in a conflict
of interest with Employer, or its affiliates,  or upon discovery thereof,  allow
such a conflict to  continue.  Moreover,  Employee  agrees that  Employee  shall
disclose to the Audit  Committee of the Employer's  Board of Directors any facts
which might involve a possible conflict of interest.
 
        1.5  Effective as of the  Effective  Date,  Employer and Employee  shall
enter into an Indemnification  Agreement containing the terms and conditions set
forth in Exhibit A attached to, and forming a part of, this Agreement.
 
        1.6 Employee  represents that he is not aware of any pre-existing health
problems which have not been disclosed to Employer.
 
 
ARTICLE 2:        COMPENSATION AND BENEFITS:
 
        2.1. For the period  between the  Effective  Date and December 31, 1995,
Employee's  base salary shall be  $250,000.00  which shall be paid in accordance
 
                                   
 
with Employer's standard payroll practice for its executives commencing with the
payroll period  beginning  October 1, 1995.  Thereafter,  Employee's base salary
during the Term shall be not less than  $1,000,000.00  per annum  which shall be
paid in  accordance  with  the  Employer's  standard  payroll  practice  for its
executives.
 
        2.2. Employee shall be entitled to a bonus of $150,000.00 for the period
between the Effective Date and December 31, 1995 provided he remains employed by
the Employer during the entirety of such period.  Such bonus shall be payable in
a single lump sum payment as soon as  practicable  following  December 31, 1995.
Beginning in 1996 and for the remainder of the Term,  Employee shall participate
in Employer's Annual Reward Plan or such similar incentive arrangement as may be
mutually agreeable to Employee and Employer.
 
        2.3. As of the  Effective  Date,  the  Employer  shall grant to Employee
under  the  Halliburton  Company  1993  Stock  and  Long-Term  Incentive  Plan a
nonqualified  stock  option to purchase up to 200,000  shares of the  Employer's
common stock. The form and other terms and conditions of such option (other than
the exercise price,  which shall be the closing price of Employer's common stock
on the New York Stock Exchange on the Effective Date) are set forth in Exhibit B
attached to, and forming a part of, this Agreement.
 
        2.4. As of October 1, 1995,  the Employer  shall grant to Employee under
the Halliburton  Company 1993 Stock and Long-Term  Incentive Plan 100,000 shares
of the Employer's  common stock subject to the  restrictions and other terms and
conditions  set forth in Exhibit C  attached  to,  and  forming a part of,  this
Agreement.
 
        2.5. At all times during the Term while Employee is employed by Employer
hereunder,  Employee  will be designated  as a  participant  in the  Halliburton
Company Senior Executives'  Deferred  Compensation Plan. For 1995, Employee will
receive an  allocation  of $125,000 to his Deferred  Compensation  Account under
such plan provided he remains employed with the Employer as of December 31, 1995
and  thereafter  during  the  Term  will  receive  an  allocation  of  at  least
$500,000.00 to his Deferred  Compensation  Account thereunder at the end of each
full  calendar  year  included  in such Term  provided  he was  employed  by the
Employer throughout the calendar year for which such allocation is to be made.
 
        2.6. The  Employer  will pay or  reimburse  Employee for all  reasonable
expenses  incurred by Employee in the course of moving his principal  residence,
family and goods from Jackson,  Wyoming to Dallas, Texas, including trips to and
from  Dallas,  Texas to locate a new  residence,  packing,  unpacking,  storage,
cartage and housing  expenses of Employee and his family in Dallas,  Texas for a
period  of up to four  months  from  October  1,  1995 and  prior to  Employee's
purchase of a new principal residence.
 
        2.7. From and after the Effective Date, Employer shall pay, or reimburse
Employee,  for all ordinary,  reasonable  and necessary  expenses which Employee
incurs in performing his duties under this Agreement including,  but not limited
to, travel,  entertainment,  professional dues and subscriptions,  and all dues,
fees and expenses associated with membership in various professional, business
 
 
and civic associations and societies of which Employee's participation is in the
best interest of Employer. Employer will reimburse Employee for reasonable legal
expenses in connection with the negotiation of this Agreement.
 
        2.8. During the Term and while Employee is employed by Employer,  and in
addition  to any group  term life  insurance  otherwise  generally  provided  to
executive  employees of  Employer,  Employer  will  purchase and maintain at its
expense  term  life  insurance  on the life of  Employee  in the face  amount of
$2,500,000  payable to the beneficiary or beneficiaries  designated by Employee;
provided,  however,  that  Employer's  obligation  to purchase and maintain such
insurance shall be contingent upon Employee's  insurability at no more than 150%
of standard risk costs from a high quality insurance carrier  (excluding special
risk carriers).
 
        2.9.  While   employed  by  Employer,   Employee  shall  be  allowed  to
participate,  on the same basis generally as other employees of Employer, in all
general  employee  benefit  plans  and  programs,   including   improvements  or
modifications  of the same,  which on the effective  date or thereafter are made
available  by  Employer  to all or  substantially  all of  Employer's  executive
employees.  Such benefits,  plans, and programs may include, without limitation,
medical,  health, and dental care, life insurance,  disability  protection,  and
qualified retirement plans. Except as specifically  provided herein,  nothing in
this  Agreement is to be construed or  interpreted  to provide  greater  rights,
participation,  coverage,  or benefits under such benefit plans or programs than
provided to executive  employees  pursuant to the terms and  conditions  of such
benefit plans and programs.
 
        2.10.  Employer  shall not by reason of this  Article 2 be  obligated to
institute,  maintain, or refrain from changing, amending, or discontinuing,  any
incentive  compensation  or employee  benefit  program or plan,  so long as such
actions are similarly applicable to covered employees generally.
 
        2.11. Employer may withhold from any compensation,  benefits, or amounts
payable under this Agreement all federal,  state, city, or other taxes as may be
required pursuant to any law or governmental regulation or ruling.
 
 
ARTICLE 3:        TERMINATION PRIOR TO EXPIRATION OF TERM AND
                  EFFECTS OF SUCH TERMINATION:
 
        3.1.  Employee's  employment  with Employer shall be terminated (i) upon
the death of Employee,  (ii) upon  Employee's  permanent  disability  (permanent
disability being defined as Employee's  physical or mental incapacity to perform
his  usual  duties  as  an  employee  with  such  condition   likely  to  remain
continuously and permanently); provided, however, that in such event, Employee's
employment  shall be continued  hereunder for a period of not less than one year
from the date of such  disability,  but not  beyond  the end of the  Term,  with
Employee's base salary during such period to be reduced by any Employer-financed
disability benefits, or (iii) subject to the provisions of clause (ii), at any
 
 
 
time during the Term by Employer  upon notice to Employee or by Employee upon 60
days' notice to Employer for any or no reason.
 
        3.2. If  Employee's  employment  is terminated by reason of a "Voluntary
Termination"  (as  hereinafter  defined),  the  death  of  Employee,   permanent
disability  of  Employee  (as  defined in Section  3.1) or by the  Employer  for
"Cause" (as hereinafter  defined),  all future compensation to which Employee is
otherwise  entitled and all future benefits for which Employee is eligible shall
cease  and  terminate  as of the date of  termination,  except  as  specifically
provided in this Section 3.2. Employee,  or his estate in the case of Employee's
death,  shall be  entitled  to pro rata  base  salary  through  the date of such
termination  and shall be  entitled  to any  individual  bonuses  or  individual
incentive compensation not yet paid but due under Employer's plans but shall not
be entitled to any other  payments by or on behalf of Employer  except for those
which may be payable pursuant to the terms of Employer's  employee benefit plans
(as  hereinafter  defined).  For  purposes  of this  Section  3.2, a  "Voluntary
Termination"  of the employment  relationship by Employee prior to expiration of
the Term shall be a termination  of employment in the sole  discretion of and at
the election of Employee,  other than (i) a termination of Employee's employment
because of a material  breach by  Employer  of any  material  provision  of this
Agreement  which  remains  uncorrected  for thirty (30) days  following  written
notice  of  such  breach  by  Employee  to  Employer  or (ii) a  termination  of
Employee's  employment  within  six  (6)  months  of  a  material  reduction  in
Employees' rank or  responsibility  with Employer.  For purposes of this Section
3.2, the term  "Cause"  shall mean any of (i)  Employee's  gross  negligence  or
willful  misconduct in the  performance  of the duties and services  required of
Employee  pursuant to this  Agreement;  (ii)  Employee's  final  conviction of a
felony;  or (iii) Employee's  material breach of any material  provision of this
Agreement  which  remains  uncorrected  for thirty (30) days  following  written
notice to Employee by Employer of such breach.
 
        3.3. If Employee's employment is terminated for any reason other than as
described in Section 3.2 above during the Term, Employer shall pay to Employee a
severance  benefit  consisting  of a single lump sum cash  payment  equal to the
value of any shares of Employer's  common stock (based upon the closing price of
Employer's  common  stock  on  the  New  York  Stock  Exchange  on the  date  of
termination  of employment)  which were granted to Employee  pursuant to Section
2.4 and which are forfeited as a result of Employee's  termination of employment
plus the lesser of (i) 150% of the base salary  (referenced  with respect to the
rate of such base salary as in effect at the date of Employee's  termination  of
employment)  that  Employee  would  have  received  between  the  date  of  such
termination  of  employment  and the end of the  Term or (ii)  $3,000,000.  Such
severance  benefit  shall  be paid no  later  than  sixty  (60)  days  following
Employee's  termination  of employment.  The severance  benefit paid pursuant to
this Section 3.3 to Employee shall be in consideration of Employee's  continuing
obligations  hereunder after such termination  (including,  without  limitation,
Employee's non-competition obligations). Employee shall not be under any duty or
obligation  to seek or  accept  other  employment  following  a  termination  of
employment  pursuant to which severance  benefit payments under this Section 3.3
are owing and the amounts due Employee pursuant to this Section 3.3 shall not be
reduced or suspended if Employee accepts subsequent employment or earns any
 
 
amounts as a self-employed individual.  Employee's rights under this Section 3.3
are Employee's sole and exclusive  rights against the Employer or its affiliates
and  the  Employer's  sole  and  exclusive  liability  to  Employee  under  this
Agreement, in contract, tort or otherwise, for the termination of his employment
relationship  with Employer.  Employee  covenants not to sue or lodge any claim,
demand or cause of action against Employer based upon Employee's  termination of
employment  for any monies  other than those  specified  in this Section 3.3. If
Employee  breaches  this  covenant,  Employer  shall be entitled to recover from
Employee all sums expended by Employer (including costs and attorneys' fees), in
connection with such suit, claim,  demand or cause of action.  Nothing contained
in this  Section  3.3  shall be  construed  to be a waiver  by  Employee  of any
benefits  accrued for or due Employee  under any employee  benefit plan (as such
term is defined in the  Employees'  Retirement  Income  Security Act of 1974, as
amended) maintained by Employer.
 
        3.4. It is  expressly  acknowledged  and agreed that the  decision as to
whether  "Cause" exists for  termination of the employment  relationship  by the
Employer  and  whether  and as of what  date  Employee  has  become  permanently
disabled is delegated  to the Board of Directors of Employer for  determination.
If Employee disagrees with the decision reached by Employer, the dispute will be
limited to whether the Board of Directors of Employer  reached this  decision in
good faith.
 
        3.5. Termination of the employment relationship does not terminate those
obligations  imposed  by  this  Agreement  which  are  continuing   obligations,
including, without limitation, Employee's obligations under Articles 4 and 5.
 
 
ARTICLE 4:        OWNERSHIP AND PROTECTION OF INTELLECTUAL
                  PROPERTY AND CONFIDENTIAL INFORMATION:
 
        4.1. All information,  ideas, concepts,  improvements,  discoveries, and
inventions,  whether patentable or not, which are conceived,  made, developed or
acquired  by  Employee,  individually  or in  conjunction  with  others,  during
Employee's  employment by Employer  (whether  during business hours or otherwise
and whether on  Employer's  premises or  otherwise)  which relate to  Employer's
business,  products  or  services  (including,   without  limitation,  all  such
information relating to corporate opportunities,  research,  financial and sales
data,  pricing  and  trading  terms,  evaluations,  opinions,   interpretations,
acquisition  prospects,  the identity of customers  or their  requirements,  the
identity  of key  contacts  within the  customer's  organizations  or within the
organization   of  acquisition   prospects,   or  marketing  and   merchandising
techniques,  prospective names, and marks), and all writings or materials of any
type  embodying  any of such items,  shall be  disclosed to Employer and are and
shall be the sole and exclusive property of Employer.
 
        4.2.  Employee  acknowledges  that the  businesses  of Employer  and its
affiliates are highly  competitive and that their  strategies,  methods,  books,
records, and documents,  their technical information  concerning their products,
equipment, services, and processes, procurement procedures and pricing
 
 
 
techniques,  the names of and other  information  (such as credit and  financial
data)  concerning  their  customers  and  business   affiliates,   all  comprise
confidential business information and trade secrets which are valuable, special,
and unique assets which  Employer,  or its  affiliates  use in their business to
obtain  a  competitive  advantage  over  their  competitors.   Employee  further
acknowledges that protection of such confidential business information and trade
secrets  against  unauthorized  disclosure and use is of critical  importance to
Employer, and its affiliates in maintaining their competitive position. Employee
hereby agrees that Employee will not, at any time during or after his employment
by Employer,  make any  unauthorized  disclosure  of any  confidential  business
information  or trade secrets of Employer,  or its  affiliates,  or make any use
thereof,  except  in  the  carrying  out  of  his  employment   responsibilities
hereunder. The above notwithstanding,  a disclosure shall not be unauthorized if
(i) it is required by law or by a court of competent  jurisdiction or (ii) it is
in connection  with any judicial or other legal  proceeding in which  Employee's
legal  rights and  obligations  as an  employee or under this  Agreement  are at
issue;  provided,  however,  that Employee shall, to the extent  practicable and
lawful in any such  events,  give  prior  notice to  Employer  of his  intent to
disclose any such  confidential  business  information  in such context so as to
allow  Employer an opportunity  (which  Employee will not oppose) to obtain such
protective  orders  or  similar  relief  with  respect  thereto  as it may  deem
appropriate.
 
        4.3. All written  materials,  records,  and other  documents made by, or
coming  into the  possession  of,  Employee  during  the  period  of  Employee's
employment  by  Employer  which  contain  or  disclose   confidential   business
information or trade secrets of Employer,  or its affiliates shall be and remain
the  property  of  Employer,  or  its  affiliates,  as the  case  may  be.  Upon
termination  of  Employee's  employment  by Employer,  for any reason,  Employee
promptly shall deliver the same, and all copies thereof, to Employer.
 
 
ARTICLE 5:        POST-EMPLOYMENT AND NON-COMPETITION OBLIGATIONS:
 
        5.1. As part of the  consideration  for the compensation and benefits to
be paid to Employee  hereunder,  and as an additional  incentive for Employer to
enter into this  Agreement,  Employer and Employee agree to the  non-competition
provisions  of this  Article  5.  Employee  agrees  that  during  the  period of
Employee's non-competition obligations hereunder, Employee will not, directly or
indirectly for Employee or for others,  in any  geographic  area or market where
Employer or any of their affiliated companies are conducting any business (other
than de  minimis  business  operations)  as of the  date of  termination  of the
employment  relationship or have during the previous twelve months conducted any
business (other than de minimis business operations):
 
         (i)    engage in any business  directly  competitive  with any business
                (other  than  de  minimis  business  operations)   conducted  by
                Employer or any of Employer's affiliates;
 
 
 
         (ii)   render  advice or services  to, or otherwise  assist,  any other
                person,  association,  or entity  who is  engaged,  directly  or
                indirectly,  in  any  business  directly  competitive  with  any
                business (other than de minimis business  operations)  conducted
                by Employer or any of Employer's affiliates; or
 
         (iii)  induce any employee of Employer or any of its affiliates  (other
                than Employee's personal secretary or administrative  assistant)
                to terminate his employment with Employer, or itsaffiliates,  or
                hire or assist in the hiring of any such induced employee by any
                person, association, or entity not affiliated with Employer.
 
These non-competition obligations shall extend until two years after termination
of  the  employment  relationship  between  Employer  and  Employee.  The  above
notwithstanding,  nothing  in this  Section  5.1 shall  prohibit  Employee  from
engaging in or being  employed by any entity that  engages in the  provision  of
management  consulting or other consulting services to third parties, even where
such entity on occasion renders advice or services to, or otherwise assists, any
other person,  association, or entity who is engaged, directly or indirectly, in
any business directly competitive with any business conducted by Employer or any
of Employer's affiliates,  so long as Employee does not personally,  directly or
indirectly (A)  participate in rendering such advice,  services or assistance to
any such competing person, association or entity, (B) provide any information or
other  assistance  to any  other  person  employed  by  Employee  or by any such
consulting entity for use, directly or indirectly,  in rendering such assistance
to any  competing  person,  association  or entity or (C) engage in any  conduct
which would be violative of the provisions of Article 4 hereof.
 
        5.2. Employee understands that the foregoing  restrictions may limit his
ability to engage in certain businesses  anywhere in the world during the period
provided for above,  but  acknowledges  that Employee will receive  sufficiently
high  remuneration  and other  benefits  under this  Agreement  to justify  such
restriction.  Employee  acknowledges  that money damages would not be sufficient
remedy for any breach of this Article 5 by Employee,  and agrees that  Employer,
on its own behalf or on behalf of any of its  affiliates,  shall be  entitled to
specific  performance  and injunctive  relief as remedies for such breach or any
threatened breach.  Such remedies shall not be deemed the exclusive remedies for
a breach of this Article 5, but shall be in addition to all  remedies  available
at law or in equity to Employer,  including, without limitation, the recovery of
damages from Employee and his agents involved in such breach.
 
        5.3. It is expressly  understood  and agreed that  Employer and Employee
consider  the  restrictions  contained in this  Article 5 to be  reasonable  and
necessary to protect the proprietary information and/or goodwill of Employer and
its affiliates.  Nevertheless, if any of the aforesaid restrictions are found by
a court having jurisdiction to be unreasonable, or overly broad as to geographic
area  or  time,  or  otherwise   unenforceable,   the  parties  intend  for  the
restrictions  therein  set  forth  to be  modified  by such  courts  so as to be
reasonable  and  enforceable  and,  as so  modified  by the  court,  to be fully
enforced.
 
 
 
 
 
ARTICLE 6:        MISCELLANEOUS:
 
        6.1.  For  purposes of this  Agreement,  (i) the terms  "affiliates"  or
"affiliated"  means an entity who directly,  or  indirectly  through one or more
intermediaries,  controls,  is  controlled  by, or is under common  control with
Employer or in which  Employer has a 50% or more equity  interest,  and (ii) any
action or omission  permitted to be taken or omitted by Employer hereunder shall
only be taken or omitted by Employer upon the express  authority of the Board of
Directors of Employer or of any Committee of the Board to which  authority  over
such matters may have been delegated.
 
        6.2  Although  executed  and  delivered  by  the  parties  hereto,  this
Agreement  shall not become  effective until such time as the Board of Directors
of Employer has expressly  approved this  Agreement.  Employer  agrees to notify
Employee promptly of the date of such approval.
 
        6.3.   For   purposes   of  this   Agreement,   notices  and  all  other
communications  provided  for herein  shall be in writing and shall be deemed to
have been duly given when  received by or tendered to Employee or  Employer,  as
applicable,  by pre-paid  courier or by United  States  registered  or certified
mail, return receipt requested, postage prepaid, addressed as follows:
 
        If to Employer, to Halliburton Company at its corporate  headquarters
        to the attention of the General Counsel of Halliburton Company.
 
        If to Employee, to his last known personal residence.
 
        6.4. This Agreement shall be governed in all respects by the laws of the
State of Texas, excluding any conflict-of-law rule or principle that might refer
to the laws of another State or country.
 
        6.5. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require  compliance  with,  any condition or
provision of this  Agreement  shall be deemed a waiver of similar or  dissimilar
provisions or conditions at the same or at any prior or subsequent time.
 
        6.6.  It  is a  desire  and  intent  of  the  parties  that  the  terms,
provisions,  covenants,  and  remedies  contained  in this  Agreement  shall  be
enforceable to the fullest extent permitted by law. If any such term, provision,
covenant,  or remedy of this Agreement or the application thereof to any person,
association, or entity or circumstances shall, to any extent, be construed to be
invalid  or  unenforceable  in whole  or in part,  then  such  term,  provision,
covenant,  or  remedy  shall  be  construed  in a  manner  so as to  permit  its
enforceability  under the applicable law to the fullest extent permitted by law.
In any case,  the  remaining  provisions  of this  Agreement or the  application
thereof to any person,  association, or entity or circumstances other than those
to which they have been held  invalid  or  unenforceable,  shall  remain in full
force and effect.
 
        6.7.  This  Agreement  shall be binding upon and inure to the benefit of
Employer  and any  other  person,  association,  or entity  which may  hereafter
acquire or  succeed to all or  substantially  all of the  business  or assets of
Employer  by  any  means  whether  direct  or  indirect,  by  purchase,  merger,
consolidation,  or  otherwise.  Employee's  rights  and  obligations  under this
Agreement are personal and such rights,  benefits,  and  obligations of Employee
shall not be voluntarily or involuntarily  assigned,  alienated, or transferred,
whether by operation of law or otherwise,  without the prior written  consent of
Employer, other than in the case of death or incompetence of Employee.
 
        6.8.  This  Agreement  replaces and merges any previous  agreements  and
discussions  pertaining to the subject  matter  covered  herein.  This Agreement
constitutes  the entire  agreement  of the parties  with regard to such  subject
matter,   and  contains  all  of  the  covenants,   promises,   representations,
warranties, and agreements between the parties with respect such subject matter.
Each party to this Agreement  acknowledges that no  representation,  inducement,
promise,  or  agreement,  oral or  written,  has been made by either  party with
respect  to such  subject  matter,  which is not  embodied  herein,  and that no
agreement,  statement,  or promise  relating  to the  employment  of Employee by
Employer that is not contained in this Agreement shall be valid or binding.  Any
modification  of this  Agreement  will be effective only if it is in writing and
signed by each party whose rights hereunder are affected thereby,  provided that
any such  modification  must be authorized or approved by the Board of Directors
of Employer.
 
        IN WITNESS  WHEREOF,  Employer  and  Employee  have duly  executed  this
Agreement  at Dallas,  Texas in multiple  originals  to be effective on the date
first stated above.
 
                                       HALLIBURTON COMPANY
 
 
                                       By:
                                            Thomas H. Cruikshank
                                            Chairman of the Board and
                                            Chief Executive Officer
 
 
 
 
                                       EMPLOYEE
 
 
 
 
                                       Name:     Richard B. Cheney
 
 
Date:    August 10, 1995
 
Exhibit A To
                         Executive Employment Agreement
                      By and Between Richard B. Cheney and
                              Halliburton Company
 
 
                           INDEMNIFICATION AGREEMENT
 
 
         THIS  AGREEMENT  is made this 10th day of August,  1995 by and  between
Halliburton  Company,  a Delaware  corporation,  (the  "Company") and Richard B.
Cheney (the "Indemnitee").
 
                                    RECITALS
 
         A. The Indemnitee has been requested to serve, or is presently serving,
as a  Director  and/or an  officer  of the  Company.  The  Company  desires  the
Indemnitee  to serve or to  continue  to serve  in such  capacity.  The  Company
believes that the  Indemnitee's  undertaking  or continued  undertaking  of such
responsibilities is important to the Company and that the protection afforded by
this  Agreement  will  enhance  the  Indemnitee's   ability  to  discharge  such
responsibilities  under  existing  circumstances.  The  Indemnitee  is  willing,
subject to certain  conditions  including  without  limitation the execution and
performance  of this  Agreement  by the Company and the  Company's  agreement to
provide  the  Indemnitee  at all  times  the  broadest  and most  favorable  (to
Indemnitee)  indemnification permitted by applicable law (whether by legislative
action or judicial decision), to serve or to continue to serve in that capacity.
 
         B. In  addition  to the  indemnification  to which  the  Indemnitee  is
entitled under the Composite  Certificate of  Incorporation  of the Company (the
"Certificate") or the By-laws, as amended,  of the Company (the "By-laws"),  the
Company has purchased and currently maintains insurance  protecting its officers
and  directors  and certain other persons  (including  the  Indemnitee)  against
certain losses arising out of actual or threatened actions, suits or proceedings
to  which  such  persons  may be made or  threatened  to be made  parties  ("D&O
Insurance").
 
         NOW,  THEREFORE,  for and in consideration of the premises,  the mutual
promises  hereinafter  set  forth,  the  reliance  of the  Indemnitee  hereon in
continuing to serve the Company in his present  capacity and in  undertaking  to
serve the Company in any additional capacity or capacities,  the Company and the
Indemnitee agree as follows:
 
         1.  Indemnification - General.  The Company shall indemnify and advance
Expenses (as hereinafter  defined) to Indemnitee to the fullest extent, and only
to the extent,  permitted by applicable  law in effect on the date hereof and to
such greater extent as applicable  law may thereafter  from time to time permit.
The rights of Indemnitee  provided  under the preceding  sentence shall include,
but shall not be limited to, the rights set forth in the other  Sections of this
Agreement.
 
         Although there can be no assurance as to the continuation or renewal of
the D&O  Insurance  or that any such D&O  Insurance  will  provide  coverage for
 
 
 
losses to which the Indemnitee may be exposed, the Company will use commercially
reasonable efforts,  taking into consideration  availability of D&O Insurance in
the  marketplace,  to continue D&O Insurance in effect at current levels for the
duration of Indemnitee's service and for six (6) years thereafter.
 
         2.  Proceedings  Other  than  Proceedings  by or in  the  Right  of the
Company.  Indemnitee shall be entitled to the indemnification rights provided in
this Section 2 if, by reason of his Corporate  Status (as hereinafter  defined),
he is, or is threatened to be made, a party to, or otherwise  incurs Expenses in
connection with, any threatened, pending or completed Proceeding (as hereinafter
defined), other than a Proceeding by or in the right of the Company. Pursuant to
this Section 2, Indemnitee  shall be indemnified  against  Expenses,  judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred
by him or on his behalf in connection with such  Proceeding or any claim,  issue
or matter  therein,  if he acted in good  faith  and in a manner  he  reasonably
believed to be in, or not opposed to, the best  interests of the  Company,  and,
with respect to any criminal Proceeding,  had no reasonable cause to believe his
conduct was unlawful.
 
         3.  Proceedings by or in the Right of the Company.  Indemnitee shall be
entitled to the indemnification rights provided in this Section 3, if, by reason
of his  Corporate  Status,  he is, or is  threatened  to be made, a party to, or
otherwise  incurs  Expenses  in  connection  with,  any  threatened,  pending or
completed  Proceeding  brought  by or in the right of the  Company  to procure a
judgment  in its  favor.  Pursuant  to  this  Section  3,  Indemnitee  shall  be
indemnified  against Expenses actually and reasonably  incurred by him or on his
behalf in  connection  with such  Proceeding  if he acted in good faith and in a
manner he reasonably believed to be in, or not opposed to, the best interests of
the Company.  Notwithstanding  the foregoing,  no  indemnification  against such
Expenses  shall  be made in  respect  of any  claim,  issue  or  matter  in such
Proceeding as to which  Indemnitee  shall have been adjudged to be liable to the
Company if applicable law prohibits  such  indemnification;  provided,  however,
that, if  applicable  law so permits,  indemnification  against  Expenses  shall
nevertheless be made by the Company despite such  adjudication of liability,  if
and only to the extent that the Court of Chancery of the State of  Delaware,  or
the court in which such Proceeding shall have been brought or is pending,  shall
determine.
 
         4.  Indemnification  for  Expenses  of a Party  Who is Wholly or Partly
Successful. Notwithstanding any other provision of this Agreement, to the extent
that  Indemnitee  is,  by  reason  of his  Corporate  Status,  a party to and is
successful,  on  the  merits  or  otherwise,  in any  Proceeding,  he  shall  be
indemnified  against all Expenses actually and reasonably  incurred by him or on
his behalf in connection  therewith.  If Indemnitee is not wholly  successful in
such Proceeding but is successful on the merits or otherwise,  as to one or more
but less than all  claims,  issues or matters in such  Proceeding,  the  Company
shall indemnify Indemnitee against all Expenses actually and reasonably incurred
by him or on his behalf in connection  with each  successfully  resolved  claim,
issue or matter. For the purposes of this Section 4 and without limitation,  the
termination  of any claim,  issue or matter in such a Proceeding  by  dismissal,
with or without prejudice,  shall be deemed to be a successful result as to such
claim, issue or matter.
 
 
         5. Contribution.  In the event that the indemnity contained in Sections
2, 3 or 4 of this Agreement is unavailable or  insufficient  to hold  Indemnitee
harmless  in a  Proceeding  described  therein,  then  in  accordance  with  the
non-exclusivity  provisions  of the  Delaware  General  Corporation  Law and the
Certificate  and By-laws,  and separate  from and in addition to, the  indemnity
provided elsewhere herein, the Company shall contribute to Expenses,  judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred
by or on behalf of Indemnitee in connection  with such  Proceeding or any claim,
issue or matter  therein,  in such  proportion  as  appropriately  reflects  the
relative  benefits  received  by, and fault of, the  Company on the one hand and
Indemnitee  on the  other in the  acts,  transactions  or  matters  to which the
Proceeding relates and other equitable considerations.
 
         6.       Procedure for Determination of Entitlement to Indemnification.
 
                (a) To obtain  indemnification under this Agreement,  Indemnitee
         shall  submit  to  the  Company  a  written  request,   including  such
         documentation and information as is reasonably  available to Indemnitee
         and is  reasonably  necessary to  determine  whether and to what extent
         Indemnitee  is  entitled  to  indemnification.   The  determination  of
         Indemnitee's  entitlement  to  indemnification  shall be made not later
         than 90 days after  receipt by the Company of the  written  request for
         indemnification.  The  Secretary of the Company  shall,  promptly  upon
         receipt  of such a request  for  indemnification,  advise  the Board of
         Directors in writing that Indemnitee has requested indemnification.
 
                (b)  Indemnitee's  entitlement to  indemnification  under any of
         Sections 2, 3, 4 and 5 of this  Agreement  shall be  determined  in the
         specific  case:  (i) by the Board of Directors by a majority  vote of a
         quorum  of  the  Board  consisting  of   Disinterested   Directors  (as
         hereinafter  defined);  (ii) by  Independent  Counsel  (as  hereinafter
         defined),  in a written  opinion if a quorum of the Board of  Directors
         consisting of  Disinterested  Directors is not  obtainable  or, even if
         obtainable, such quorum of Disinterested Directors so directs; or (iii)
         by the  stockholders  of the  Company.  If, with regard to Section 5 of
         this Agreement,  such a  determination  is not permitted by law or if a
         quorum of Disinterested  Directors so directs, such determination shall
         be made by the Chancery  Court of the State of Delaware or the court in
         which the Proceeding  giving rise to the claim for  indemnification  is
         brought.
 
                (c) In the  event  that  the  determination  of  entitlement  to
         indemnification  is to be  made  by  Independent  Counsel  pursuant  to
         Section  6(b) of this  Agreement,  the  Independent  Counsel  shall  be
         selected as provided in this  Section  6(c).  The  Independent  Counsel
         shall be selected by the Board of Directors, and the Company shall give
         written  notice  to  Indemnitee  advising  him of the  identity  of the
         Independent  Counsel so selected.  Indemnitee  may, within 7 days after
         receipt of such  written  notice of  selection  shall have been  given,
         deliver to the  Company a written  objection  to such  selection.  Such
         objection  may be  asserted  only on the  ground  that the  Independent
         Counsel so selected does not meet the requirements of "Independent
 
 
 
         Counsel" as defined in Section 13 of this Agreement,  and the objection
         shall set forth with particularity the factual basis of such assertion.
         If such written objection is made, the Independent  Counsel so selected
         shall be  disqualified  from acting as such.  If,  within 20 days after
         submission  by  Indemnitee  of a written  request  for  indemnification
         pursuant to Section  6(a) of this  Agreement,  no  Independent  Counsel
         shall have been  selected,  or if selected shall have been objected to,
         in accordance with this Section 6(c),  either the Company or Indemnitee
         may  petition  the Court of Chancery  of the State of Delaware  for the
         appointment as Independent  Counsel of a person  selected by such court
         or by such other person as such court shall  designate,  and the person
         so appointed  shall act as  Independent  Counsel  under Section 6(b) of
         this  Agreement,  and the  Company  shall pay all  reasonable  fees and
         expenses incident to the procedures of this Section 6(c), regardless of
         the manner in which such Independent Counsel was selected or appointed.
 
         7.  Advancement  of Expenses.  The Company shall advance all reasonable
Expenses  incurred  by or  on  behalf  of  Indemnitee  in  connection  with  any
Proceeding  within 20 days after the receipt by the  Company of a  statement  or
statements  from  Indemnitee  requesting  such advance or advances  from time to
time, whether prior to or after final disposition of such Proceeding. Indemnitee
shall,  and  hereby  undertakes  to,  repay any  Expenses  advanced  if it shall
ultimately  be  determined  that  Indemnitee  is not entitled to be  indemnified
against such Expenses.
 
         8. Presumptions and Effect of Certain  Proceedings.  The termination of
any proceeding  described in any of Sections 2, 3 or 4 of this Agreement,  or of
any  claim,  issue  or  matter  therein,  by  judgment,   order,  settlement  or
conviction,  or upon a plea of nolo  contendere  or its  equivalent,  shall  not
(except as otherwise  expressly  provided in this Agreement) of itself adversely
affect the right of Indemnitee to  indemnification  or create a presumption that
Indemnitee  did  not act in good  faith  and in a  manner  which  he  reasonably
believed to be in or not opposed to the best  interests  of the Company or, with
respect to any criminal  Proceeding,  that  Indemnitee had  reasonable  cause to
believe that his conduct was unlawful.
 
         9. Term of Agreement.  All  agreements  and  obligations of the Company
contained herein shall commence as of the time the Indemnitee commenced to serve
as a director,  officer, employee or agent of the Company (or commenced to serve
at the  request of the  Company as a  director,  officer,  employee  or agent of
another corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise) and shall continue for so long as Indemnitee shall so serve or
shall be, or could  become,  subject to any  possible  Proceeding  in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder.
 
         10.  Notification  and  Defense  of Claim.  Promptly  after  receipt by
Indemnitee of notice of the commencement of any Proceeding,  Indemnitee will, if
a claim  in  respect  thereof  is to be made  against  the  Company  under  this
Agreement,  notify the Company of the commencement  thereof; but the omission to
notify the Company will not relieve it from any  liability  which it may have to
Indemnitee  otherwise  than  under  this  Agreement.  With  respect  to any such
Proceeding  as to which  Indemnitee  notifies  the  Company of the  commencement
thereof:
 
 
                (a) The Company will be entitled to  participate  therein at its
         own expense.
 
                (b) Except as otherwise  provided  below,  to the extent that it
         may  wish,  the  Company  jointly  with any  other  indemnifying  party
         similarly notified will be entitled to assume the defense thereof, with
         counsel  satisfactory  to Indemnitee.  After notice from the Company to
         Indemnitee  of its  election  so to assume  the  defense  thereof,  the
         Company will not be liable to Indemnitee  under this  Agreement for any
         legal  or  other  Expenses   subsequently  incurred  by  Indemnitee  in
         connection  with the defense  thereof  other than  reasonable  costs of
         investigation or as otherwise provided below. Indemnitee shall have the
         right  to  employ  its  counsel  in such  Proceeding  but the  fees and
         Expenses of such counsel  incurred after notice from the Company of its
         assumption of the defense thereof shall be at the expense of Indemnitee
         unless (i) the employment of counsel by Indemnitee has been  authorized
         by the Company, or (ii) Indemnitee shall have reasonably concluded that
         there may be a conflict of interest  between the Company and Indemnitee
         in the conduct of the defense of such Proceeding,  or (iii) the Company
         shall not in fact have  employed  counsel to assume the defense of such
         Proceeding,  in each of which  cases the fees and  Expenses  of counsel
         shall be at the  expense  of the  Company.  The  Company  shall  not be
         entitled  to assume  the  defense  of any  Proceeding  brought by or on
         behalf of the  Company  or as to which  Indemnitee  shall have made the
         conclusion provided for in (ii) above.
 
                (c) The  Company  shall not be liable  to  indemnify  Indemnitee
         under  this  Agreement  for  any  amounts  paid  in  settlement  of any
         Proceeding or claim effected without its written  consent.  The Company
         shall not settle any  Proceeding  or claim in any  manner  which  would
         impose any penalty or  limitation on  Indemnitee  without  Indemnitee's
         written consent.  Neither the Company nor Indemnitee will  unreasonably
         withhold their consent to any proposed settlement.
 
         11.      Enforcement.
 
                (a)  The  Company  expressly  confirms  and  agrees  that it has
         entered into this Agreement and assumed the  obligations  imposed on it
         hereby in order to induce Indemnitee to serve or continue to serve as a
         director  and/or  officer  of  the  Company,   and  acknowledges   that
         Indemnitee  is relying upon this  Agreement in serving or continuing to
         serve in such capacity.
 
                (b) In the event  Indemnitee  is required to bring any action to
         enforce  rights or to collect  moneys due under this  Agreement  and is
         successful in such action,  the Company shall reimburse  Indemnitee for
         all of  Indemnitee's  reasonable  fees and  Expenses  in  bringing  and
         pursuing such action.
 
         12.  Non-Exclusivity of Rights.  The rights of  indemnification  and to
receive  advancement  of Expenses as  provided  by this  Agreement  shall not be
 
 
 
 
deemed  exclusive  of any other  rights to which  Indemnitee  may at any time be
entitled under applicable law, the Certificate,  the By-laws,  any agreement,  a
vote of stockholders or a resolution of directors, or otherwise.
 
         13.    Definitions.   For purposes of this Agreement:
 
                (a) "Corporate  Status"  describes the status of a person who is
         or was a director, officer, employee, agent or fiduciary of the Company
         or  of  any  other  corporation,  partnership,  joint  venture,  trust,
         employee  benefit plan or other  enterprise which such person is or was
         serving at the request of the Company.
 
                (b) "Disinterested Director" means a director of the Company who
         is not and was not at any time a party to the  Proceeding in respect of
         which indemnification is sought by Indemnitee.
 
                (c)  "Expenses"  shall include all reasonable  attorneys'  fees,
         retainers,  court costs,  transcript  costs,  fees of experts,  witness
         fees, travel expenses,  duplicating costs,  printing and binding costs,
         telephone  charges,  postage,  delivery  service  fees,  and all  other
         disbursements  or  Expenses  of  the  types  customarily   incurred  in
         connection  with  prosecuting,  defending,  preparing  to  prosecute or
         defend or investigating a Proceeding.
 
                (d) "Independent Counsel" means a law firm, or a member of a law
         firm,  that is experienced  in matters of  corporation  law and neither
         presently  is,  nor in the  past  five  years  has  been,  retained  to
         represent:  (i) the  Company or  Indemnitee  in any matter  material to
         either such party or (ii) any other party to the Proceeding giving rise
         to  a  claim  for   indemnification   hereunder.   Notwithstanding  the
         foregoing,  the term "Independent Counsel" shall not include any person
         who,  under the  applicable  standards  of  professional  conduct  then
         prevailing,  would have a conflict of interest in  representing  either
         the Company or Indemnitee in an action to determine Indemnitee's rights
         under this Agreement.
 
                (e)  "Proceeding"   includes  any  action,  suit,   arbitration,
         alternate dispute resolution mechanism,  investigation,  administrative
         hearing or any other proceeding whether civil, criminal, administrative
         or investigative.
 
         14.  Severability.  Each  of the  provisions  of  this  Agreement  is a
separate and distinct  agreement and  independent of the others,  so that if any
provision  hereof shall be held to be invalid or  unenforceable  for any reason,
such   invalidity  or   unenforceability   shall  not  affect  the  validity  or
enforceability of the other provisions hereof.
 
         15.  Governing Law; Binding Effect; Amendment and Termination.
 
                (a)  THIS  AGREEMENT   SHALL  BE  INTERPRETED  AND  ENFORCED
         IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY
 
 
         CONFLICT-OF-LAW RULE OR PRINCIPLE THAT MIGHT REFER TO THE
         LAWS OF ANOTHER STATE OR COUNTRY.
 
                (b) This Agreement shall be binding upon Indemnitee and upon the
         Company,  its successors and assigns, and shall inure to the benefit of
         Indemnitee,  his heirs, personal representatives and assigns and to the
         benefit of the Company, its successors and assigns.
 
                (c) No amendment,  modification,  termination or cancellation of
         this Agreement shall be effective unless in writing by the parties.
 
         The parties have executed  this  Agreement as of the day and year first
above written.
                                                             
                                       HALLIBURTON COMPANY
 
 
                                       By: /s/ Thomas H. Cruikshank
                                          -----------------------------
                                               Thomas H. Cruikshank
                                               Chairman of the Board and
                                               Chief Executive Officer
 
 
                                           /s/ Richard B. Cheney   
                                          ------------------------------
                                               Richard B. Cheney
                                               Indemnitee
 
 
 
 
                                  Exhibit B to
                         Executive Employment Agreement
                      By and Between Richard B. Cheney and
                              Halliburton Company
 
 
                      NONSTATUTORY STOCK OPTION AGREEMENT
 
 
         AGREEMENT made as of the 10th day of August,  1995, between HALLIBURTON
COMPANY,  a  Delaware  corporation  (the  "Company"),   and  Richard  B.  Cheney
("Employee").
 
         To carry out the  purposes of the  HALLIBURTON  COMPANY  1993 STOCK AND
LONG-TERM  INCENTIVE PLAN (the "Plan"), by affording Employee the opportunity to
purchase shares of common stock, par value $2.50 per share, of the Company
("Stock"),  and in consideration of the mutual  agreements and other matters set
forth herein and in the Plan, the Company and Employee hereby agree as follows:
 
         1. Grant of Option.  The Company hereby  irrevocably grants to Employee
the right and option  ("Option")  to purchase all or any part of an aggregate of
200,000 shares of Stock, on the terms and conditions set forth herein and in the
Plan,  which  Plan  is  incorporated  herein  by  reference  as a part  of  this
Agreement.  This Option shall not be treated as an incentive stock option within
the meaning of section  422(b) of the Internal  Revenue Code of 1986, as amended
(the "Code").
 
         2. Purchase Price.  The purchase price of Stock  purchased  pursuant to
the  exercise  of this  Option  shall be  $_______  per  share,  which  has been
determined to be not less than the fair market value of the Stock at the date of
grant of this Option.  For all purposes of this Agreement,  fair market value of
Stock shall be determined in accordance with the provisions of the Plan.
 
         3. Exercise of Option. Subject to the earlier expiration of this Option
as herein  provided,  this  Option may be  exercised,  by written  notice to the
Company at its principal executive office addressed to the attention of its Vice
President  and  Secretary,  at any time and from time to time  after the date of
grant hereof,  but, except as otherwise provided below, this Option shall not be
exercisable for more than a percentage of the aggregate number of shares offered
by this  Option  determined  by the  number of full years from the date of grant
hereof to the date of such exercise, in accordance with the following schedule:
<TABLE>
<CAPTION>
                                                        Percentage of Shares
                  Number of Full Years                  That May be Purchased
                  <S>                                   <C>    
 
                  Less than         1 year                        0%
                                    1 year                        33 1/3%
                                    2 years                       67%
                                    3 years                       100%
 
</TABLE>
 
 
 
 
 
         This Option is not  transferable by Employee  otherwise than by will or
the laws of descent  and  distribution,  and may be  exercised  only by Employee
during  Employee's  lifetime.  This Option may be exercised  only while Employee
remains an employee of the Company, subject to the following exceptions:
 
                (a) If  Employee's  employment  with the Company  terminates  by
         reason of disability  (disability  being defined as being physically or
         mentally  incapable of  performing  the  Employee's  usual duties as an
         Employee  with  such  condition  likely  to  remain   continuously  and
         permanently, as determined by the Committee administering the Plan (the
         "Committee")),  this Option may be  exercised  in full by Employee  (or
         Employee's estate or the person who acquires this Option by will or the
         laws of descent and distribution or otherwise by reason of the death of
         Employee) at any time during the period ending on the Expiration Date.
 
                (b) If  Employee  dies  while  in  the  employ  of the  Company,
         Employee's  estate,  or the person who acquires  this Option by will or
         the laws of descent  and  distribution  or  otherwise  by reason of the
         death of Employee,  may exercise this Option in full at any time during
         the period ending on the Expiration Date.
 
                (c) If  Employee's  employment  with the Company  terminates  by
         reason of  retirement  at or after age 62 or  earlier  retirement  with
         consent  of the  Committee,  this  Option may be  exercised  in full by
         Employee at any time during the period  ending on the  Expiration  Date
         (as defined below). If Employee dies after such retirement, this Option
         may be  exercised  in full by  Employee's  estate  (or the  person  who
         acquires this Option by will or the laws of descent and distribution or
         otherwise  by reason of the death of the  Employee)  during  the period
         ending on the Expiration Date.
 
                (d) If Employee's  employment  with the Company is terminated by
         the  Company  other  than  for  "Cause"  or  Employee   terminates  his
         employment  with the Company  (i)  because of a material  breach by the
         Company of any material  provision of any employment  agreement between
         the  Company  and  Employee  which  remains  uncorrected  for  30  days
         following  written  notice of such breach by Employee to the Company or
         (ii) within six months of a material  reduction in  Employee's  rank or
         responsibilities with the Company, this Option may be exercised in full
         by Employee at any time during the period ending on the Expiration Date
         or by Employee's estate (or the person who acquires this Option by will
         or the laws of descent and  distribution  or otherwise by reason of the
         death of the Employee)  during the period ending on the Expiration Date
         if Employee  dies during such period.  For purposes of this  Agreement,
         the term "Cause" shall mean any of (i) Employee's  gross  negligence or
         willful  misconduct  in the  performance  of the  duties  and  services
         required of Employee pursuant to this Agreement,  (ii) Employee's final
         conviction  of a felony;  or (iii)  Employee's  material  breach of any
         material  provision of this Agreement which remains  uncorrected for 30
         days  following  written  notice to  Employee  by the  Company  of such
         breach.
 
 
                (e) If Employee's employment with the Company terminates for any
         reason  other than those set forth in  subparagraphs  (a)  through  (d)
         above,  this Option may be exercised by Employee at any time during the
         period of 30 days following such  termination,  or by Employee's estate
         (or the person who acquires  this Option by will or the laws of descent
         and  distribution  or otherwise by reason of the death of the Employee)
         during a period of six months  following  Employee's  death if Employee
         dies during such 30-day period,  but in each case only as to the number
         of shares Employee was entitled to purchase  hereunder upon exercise of
         this Option as of the date Employee's employment so terminates.
 
         This  Option  shall  not be  exercisable  in  any  event  prior  to the
expiration  of six months from the date of grant hereof or after the  expiration
of  ten  years  from  the  date  of  grant   hereof  (the   "Expiration   Date")
notwithstanding  anything hereinabove contained. The purchase price of shares as
to which this Option is exercised  shall be paid in full at the time of exercise
(a) in cash (including  check, bank draft or money order payable to the order of
the Company),  (b) by  delivering  to the Company  shares of Stock having a fair
market value equal to the purchase  price,  or (c) by a  combination  of cash or
Stock.  Payment may also be made,  in the  discretion  of the  Committee  or its
delegate, as appropriate,  by delivery (including by facsimile  transmission) to
the  Company of an executed  irrevocable  option  exercise  form,  coupled  with
irrevocable  instructions  to a  broker-dealer  designated  by  the  Company  to
simultaneously  sell a sufficient number of the shares as to which the option is
exercised and deliver directly to the Company that portion of the sales proceeds
representing the exercise price. No fraction of a share of Stock shall be issued
by the Company upon  exercise of an Option or accepted by the Company in payment
of the purchase price thereof; rather, Employee shall provide a cash payment for
such amount as is necessary to effect the issuance and  acceptance of only whole
shares of Stock.  Unless and until a certificate  or  certificates  representing
such shares shall have been issued by the Company to Employee,  Employee (or the
person permitted to exercise this Option in the event of Employee's death) shall
not be or have any of the rights or privileges  of a shareholder  of the Company
with respect to shares acquirable upon an exercise of this Option.
 
         4.  Withholding  of Tax. To the extent that the exercise of this Option
or the  disposition  of shares of Stock  acquired  by  exercise  of this  Option
results in  compensation  income to  Employee  for  federal or state  income tax
purposes,  Employee shall deliver to the Company at the time of such exercise or
disposition  such  amount of money or shares of Stock as the Company may require
to meet its  withholding  obligation  under  applicable tax laws or regulations,
and, if Employee  fails to do so, the Company is authorized to withhold from any
cash or Stock  remuneration  then or  thereafter  payable  to  Employee  any tax
required to be withheld by reason of such resulting compensation income. Upon an
exercise of this Option,  the Company is further authorized in its discretion to
satisfy  any such  withholding  requirement  out of any cash or  shares of Stock
distributable to Employee upon such exercise.
 
 
 
 
         5.  Status  of  Stock.  Notwithstanding  any  other  provision  of this
Agreement,  in the absence of an effective  registration  statement for issuance
under the Securities Act of 1933, as amended (the "Act"), of the shares of Stock
acquirable  upon  exercise  of  this  Option,  or an  available  exemption  from
registration under the Act, issuance of shares of Stock acquirable upon exercise
of this Option will be delayed until registration of such shares is effective or
an exemption from registration  under the Act is available.  The Company intends
to use its best  efforts to ensure that no such delay will  occur.  In the event
exemption from registration  under the Act is available upon an exercise of this
Option,  Employee (or the person  permitted to exercise this Option in the event
of Employee's  death or incapacity),  if requested by the Company to do so, will
execute  and  deliver to the  Company in writing an  agreement  containing  such
provisions  as the  Company  may require to assure  compliance  with  applicable
securities laws.
 
         Employee  agrees that the shares of Stock which Employee may acquire by
exercising  this Option will not be sold or otherwise  disposed of in any manner
which would constitute a violation of any applicable  securities  laws,  whether
federal or state.  Employee also agrees (i) that the  certificates  representing
the shares of Stock  purchased under this Option may bear such legend or legends
as the Company deems  appropriate in order to assure  compliance with applicable
securities  laws,  (ii) that the Company may refuse to register  the transfer of
the shares of Stock purchased under this Option on the stock transfer records of
the  Company  if  such  proposed  transfer  would  in  the  opinion  of  counsel
satisfactory to the Company constitute a violation of any applicable  securities
law and (iii) that the Company may give  related  instructions  to its  transfer
agent,  if any,  to stop  registration  of the  transfer  of the shares of Stock
purchased under this Option.
 
         If Employee  desires to sell any shares of Stock  acquired  pursuant to
the  provisions of this Agreement and if such shares may not be sold on the open
market without  registration  pursuant to applicable  securities  laws, then the
Company  shall,  within five days after  notice  from  Employee  indicating  his
intention to sell such shares and the number of shares to be sold,  purchase for
cash  such  shares at a price per share  based on the  closing  sales  price for
shares of Stock traded on the New York Stock  Exchange on the date of receipt by
the Company of said notice.
 
         6. Employment  Relationship.  For purposes of this Agreement,  Employee
shall be considered  to be in the  employment of the Company as long as Employee
remains an employee of either the Company,  a parent or  subsidiary  corporation
(as defined in section 424 of the Code) of the Company,  or a  corporation  or a
parent or subsidiary of such  corporation  assuming or substituting a new option
for  this  Option.  Any  question  as to  whether  and  when  there  has  been a
termination  of such  employment,  and the cause of such  termination,  shall be
determined  by  the  Committee  or  its  delegate,  as  appropriate,   and  such
determination shall be final.
 
         7. Binding  Effect.  This Agreement  shall be binding upon and inure to
the benefit of any successors to the Company and all persons  lawfully  claiming
under Employee.
 
         8. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas,  excluding any  conflict-of-law
rule or principle that might refer to the laws of another State or country.
 
 
 
         IN WITNESS  WHEREOF,  the Company has caused this  Agreement to be duly
executed by its officer  thereunto  duly  authorized,  and Employee has executed
this Agreement, all as of the day and year first above written.
 
 
                                               HALLIBURTON COMPANY
 
 
 
                                               By:--------------------------
                                                   Thomas H. Cruikshank
                                                   Chairman of the Board and
                                                   Chief Executive Officer
 
 
 
                                                  --------------------------
                                                   Richard B. Cheney
                                                   Employee